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Journalism of Courage
MUMBAI, May 11: Videocon International Ltd VIL has posted a net profit of Rs 125.04 crore for the year ended March 1998, a 52.25 per cent jump from the previous year8217;s figure of Rs 82.13 crore.
As per unaudited results, net sales were up by 22.91 per cent to Rs 2,108.10 crore from Rs 1,715.13 crore. Profit before tax increased to Rs 132.54 crore from Rs 94.58 crore, an increase of 40.13 per cent.
The consumer electronicsindustry witnessed some severe price wars during 1997-98. The battle, especially in the colour television market, was keenly fought between Akai and Videocon with repeated price cuts and exchange offers. In fact, VIL ended the year by making an offer in March which promised to return the down payment to buyers after a specified period of time. Company executives say that the scheme was a runaway success with sales topping 1 lakh sets during the month.
The rise in it8217;s operating margins is attributed to higher volume growth due to increased market share in the second half. Moreover, the commencement of its glass shell picture tube project considerably reduced the production cost of colour televisions. VIL enjoys a market share of 32 per cent in colour televisions and 17 per cent in Bamp;W. Considering the current buoyancy in the scrip, the promoters might hike the price of Rs 140 for acquiring 2 per cent equity through an open tender.
